F5 Acquires Threat Stack for $68 Million

F5, a leading applications networking organization, has announced the acquisition of Threat Stack, a cloud security and compliance startup located in Boston. The transaction is valued at $68 million.

Expanding Cloud Security Capabilities

This acquisition follows F5’s recent purchase of Volterra, a multi-cloud management startup, for $500 million. It demonstrates F5’s commitment to strengthening its cloud security offerings. Applications are increasingly becoming the primary target for cyberattacks.

F5 reports that businesses suffer losses exceeding $100 billion annually due to attacks focused on digital experiences. These experiences are now largely driven by applications distributed across diverse environments and connected via APIs.

About Threat Stack

Founded in November 2012, Threat Stack has secured over $70 million in funding across six rounds. Notable investors include F-Prime Capital Partners and Eight Roads Ventures, who led a $45 million Series C funding round.

The company specializes in application cloud security, providing customers with real-time threat detection for both cloud infrastructure and workloads. Threat Stack distinguishes itself through a proactive security approach.

Proactive Threat Detection

Unlike many cloud security solutions that react after a breach occurs, Threat Stack proactively identifies known vulnerabilities. It delivers reports detailing security gaps requiring attention.

The Threat Stack Cloud Security Platform operates effectively across cloud, hybrid cloud, multi-cloud, and containerized environments. A key feature is its integration with Slack, which provides DevOps teams with immediate security alerts.

Notable Clients

Threat Stack serves a range of prominent organizations. Its customer base includes companies like Glassdoor, Ping Identity, and Proofpoint.

Synergies with F5

F5 believes integrating its application and API protection solutions with Threat Stack’s cloud security expertise will provide enhanced visibility. This will cover application infrastructure and workloads.

This integration will simplify the adoption of consistent security measures across any cloud environment for customers.

Executive Statement

“Applications are fundamental to modern business operations, and their protection is paramount for our clientele,” stated Haiyan Song, EVP of Security at F5. “Threat Stack’s technology and skilled personnel will augment F5’s security capabilities.”

Song further added that the acquisition supports F5’s vision of adaptive applications, offering broader cloud observability and actionable security insights.

Closing Details

The acquisition is anticipated to be finalized during F5’s first fiscal quarter of 2022. Completion is contingent upon fulfilling standard closing conditions.